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<?xml version="1.0" encoding="UTF-8"?><rss version="2.0" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:wfw="http://wellformedweb.org/CommentAPI/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:sy="http://purl.org/rss/1.0/modules/syndication/" xmlns:slash="http://purl.org/rss/1.0/modules/slash/" xmlns:georss="http://www.georss.org/georss" xmlns:geo="http://www.w3.org/2003/01/geo/wgs84_pos#" xmlns:media="http://search.yahoo.com/mrss/"> <channel> <title>HousingWire</title> <atom:link href="https://www.housingwire.com/feed/" rel="self" type="application/rss+xml" /> <link>https://www.housingwire.com/</link> <description>HousingWire is the nation's most influential source of news and information on housing and mortgage lending.</description> <lastBuildDate>Thu, 02 May 2024 03:28:21 +0000</lastBuildDate> <language>en-US</language> <sy:updatePeriod> hourly </sy:updatePeriod> <sy:updateFrequency> 1 </sy:updateFrequency> <generator>https://wordpress.org/?v=6.4.4</generator> <image> <url>https://www.housingwire.com/wp-content/uploads/2023/10/cropped-favicon-bg.png?w=32</url> <title>HousingWire</title> <link>https://www.housingwire.com/</link> <width>32</width> <height>32</height></image> <site xmlns="com-wordpress:feed-additions:1">165477913</site> <item> <title>Real estate farming: Become the go-to agent in your area using these tips, tools & strategies</title> <link>https://www.housingwire.com/articles/real-estate-farming/</link> <dc:creator><![CDATA[Megan DeMatteo, Emile L'Eplattenier]]></dc:creator> <pubDate>Thu, 02 May 2024 02:57:13 +0000</pubDate> <category><![CDATA[Real Estate Lead Generation]]></category> <category><![CDATA[Real Estate Marketing]]></category> <category><![CDATA[Vetted by HousingWire]]></category> <guid isPermaLink="false"></guid> <description><![CDATA[Learn how to generate a steady pipeline of real estate leads and clients in your area using this proven approach. ]]></description> <content:encoded><![CDATA[<p class="disclaimer link-text link-text-hover has-text-color" style="color:#777777;font-size:12px"><strong><a href="https://www.housingwire.com/vetted-about/">Vetted by HousingWire</a> </strong> | Our editors independently review the products we recommend. When you buy through our links, we may earn a commission.</p> <p>Real estate farming, otherwise known as geo-farming, is a dependable lead generation method that can help to create a steady pipeline of real estate leads and clients in your area. Real estate farming is a slow-burn strategy where consistency and intentionality matter, but when it’s done right, your efforts can yield long-ranging results when guided by a community-first approach. If you want to add effective real estate farming tips, tools and tactics to your marketing arsenal, our guide will show you how it’s done.</p> <details class="wp-block-details toc-accordion-2 has-normal-font-size is-layout-flow wp-block-details-is-layout-flow"><summary>Summary</summary><ul style="font-size:16px" class="arrow-list"><li><a href="#what-is">What is real estate farming?</a></li> <li><a href="#why-its-effective">Why real estate farming is so effective?</a></li> <li><a href="#step-by-step-real-estate-farming-strategy">Real estate farming: a step-by-step strategy</a><ul><li><a href="#step-1">Step 1 — Choose your farm area carefully</a></li> <li><a href="#step-2">Step 2 — Understand your farm’s demographics</a></li> <li><a href="#step-3">Step 3 — Study the sales data</a></li> <li><a href="#step-4">Step 4 — Plan your outreach</a></li> <li><a href="#step-5">Step 5 — Calculate your budget and expected ROI</a></li> <li><a href="#step-6">Step 6 — Start farming</a></li> <li><a href="#step-7">Step 7 — Track and nurture leads</a></li></ul></li> <li><a href="#real-estate-farming-tools">Real estate farming tools</a></li> <li><a href="#tips-and-best-practices">Real estate farming: Tips and best practices</a></li> <li><a href="#faqs">FAQs</a></li></ul></details> <h2 class="wp-block-heading" id="what-is">What is real estate farming?</h2> <p>Real estate farming is a lead generation strategy where agents focus their marketing efforts on a specific geographic area. The goal is to regularly put your personal brand in front of community members to position yourself as a local expert in a specific zip code or neighborhood.<br><br>Common real estate farming ideas include direct outreach via mail, email or direct mailers, but you can also host neighborhood social events, sponsor seasonal events and provide helpful real estate information resources to your community through a social media group or webpage. </p> <h2 class="wp-block-heading" id="why-its-effective">Why real estate farming is so effective?</h2> <p>Like all marketing, real estate farming is psychological. The well-established <a href="https://blog.hubspot.com/marketing/integrated-marketing-mistakes?__hstc=44321979.2b82f492f1fbc855d38309b9cc264e1a.1699551099542.1710282790890.1710287477958.82&__hssc=44321979.3.1710287477958&__hsfp=3003129046" target="_blank" rel="noreferrer noopener">rule of seven</a> explains that consumers typically work with a brand or service only after repeated exposure to it. The reason farming works so well is simple. It’s much easier, not to mention much more affordable, to get that repeated exposure in a small geographic area.</p> <p>Real estate agents rarely use farming as their only marketing approach, but the ones who use it successfully credit real estate farming for the longevity of their business. Remember — most of the time, buyers and sellers may not be actively looking for your services, but when they are, real estate farming ensures you are always top-of-mind. <br><br>Clients are more likely to pick up the phone and call you after seeing your name on your real estate postcards and newsletters, for example. And after winning business in a small geographic area, your referral business begins to build upon your success.</p> <h2 class="wp-block-heading" id="step-by-step-real-estate-farming-strategy">Real estate farming: a step-by-step strategy</h2> <figure class="wp-block-image size-large"><img fetchpriority="high" decoding="async" width="1200" height="675" data-attachment-id="444671" data-permalink="https://www.housingwire.com/articles/real-estate-farming/real-estate-farming_residential/" data-orig-file="https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming_Residential.png" data-orig-size="1200,675" data-comments-opened="1" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-image-title="Real Estate Farming_Residential" data-image-description="" data-image-caption="" data-medium-file="https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming_Residential.png?w=300" data-large-file="https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming_Residential.png?w=1024" src="https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming_Residential.png?w=1024" alt="Real Estate Farming_Residential" class="wp-image-444671" srcset="https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming_Residential.png 1200w, https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming_Residential.png?resize=150,84 150w, https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming_Residential.png?resize=300,169 300w, https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming_Residential.png?resize=768,432 768w, https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming_Residential.png?resize=1024,576 1024w" sizes="(max-width: 1200px) 100vw, 1200px" /></figure> <p>Every real estate agent has their own approach to real estate farming, but a few common parallels exist:</p> <h3 class="wp-block-heading" id="step-1">Step 1 — Choose your farm area carefully</h3> <p>Selecting your farm area comes down to combining your personal preferences and industry “green flags” that signal an area is worth investing resources into.</p> Finally, understand what makes your farm area unique. Which companies and job sites are located nearby? How are the school districts? What attracts people to this area, and where do they want to live? Be able to name the best grocery stores, community recreation centers, places of worship, nature centers and shopping areas. Also, know about specific local initiatives and incentives, like land trusts, environmental regulations, property developments, or upcoming renovation projects. For instance, are they expanding a local walking trail, building a new multi-use apartment complex, or adding a new redlight camera in a nearby intersection? These may seem like minor details, but they’ll matter considerably in future clients’ lives. <h3 class="wp-block-heading" id="step-2">Step 2 — Understand your farm’s demographics</h3> <p>Now it’s time to learn about your customer. Research who lives in the area; are they families, retirees or young professionals? Identify who might be looking to move into the area and who might be planning to leave, including families needing larger homes or empty nesters looking to downsize.</p> <figure class="alignleft size-full is-resized"><img decoding="async" width="592" height="100" data-attachment-id="416154" data-permalink="https://www.housingwire.com/articles/best-real-estate-crm/logo-top-producer/" data-orig-file="https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Top-Producer.png" data-orig-size="592,100" data-comments-opened="1" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-image-title="Logo-Top-Producer" data-image-description="" data-image-caption="" data-medium-file="https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Top-Producer.png?w=300" data-large-file="https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Top-Producer.png?w=592" src="https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Top-Producer.png" alt="Top Producer logo; a real estate CRM or customer relationship management software" class="wp-image-416154" style="width:207px;height:auto" srcset="https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Top-Producer.png 592w, https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Top-Producer.png?resize=150,25 150w, https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Top-Producer.png?resize=300,51 300w" sizes="(max-width: 592px) 100vw, 592px" /></figure> <p>Want to laser focus your marketing on homeowners who are most likely to sell their homes in your farm area? AI farming tools like Top Producer’s Smart Targeting can help. By analyzing thousands of data points with AI, Smart Targeting can predict which homeowners are likely to sell in the next six months. Even better, it comes bundled with a CRM most agents already know and love so you won’t have to waste time learning yet another new app to market to them.</p> Check out Top Producer</a> <h3 class="wp-block-heading" id="step-3">Step 3 — Study the sales data</h3> <p>You’ve already studied data to select your farm area, but now is the time to zero in on more specifics. You should look at:</p> <ul class="arrow-list"><li><strong>Average price and days on the market (DOM):</strong> Know the area’s average listing and selling prices, plus how long properties typically sit on the market.</li> <li><strong>Current inventory:</strong> Monitor the current homes available for sale, including the types of homes, price ranges and unique property features.</li> <li><strong>Price trends</strong>: To understand market dynamics, consider how prices have changed over time for different property types like single-family homes or condos.</li> <li><strong>Listing vs. sales price:</strong> Help your clients understand how much negotiation room they might have in upcoming transactions. A large gap between listing and selling prices (in either direction) can inform your understanding of supply and demand.</li></ul> <h3 class="wp-block-heading" id="step-4">Step 4 — Plan your outreach</h3> <p>Now that you know who is in your area, their needs, and what the financial data shows, you can start planning and budgeting for your marketing strategy.</p> <p>Plan for a mix of in-person, digital and physical outreach methods. Most importantly, build predictability. Pick activities you know you can follow through on consistently. Try thinking of your outreach plan in terms of annual, quarterly, monthly, weekly, and ad-hoc initiatives that whet your prospects’ appetite for more interactions with you. It could look something like this:</p> Mail “Just Sold” postcards to neighbors whenever you broker a successful sale or purchase. <h4 class="wp-block-heading" id="h-email-marketing-newsletters-amp-text-messaging">Email Marketing, Newsletters & Text Messaging</h4> <p>Start with simple email marketing and SMS (text) campaigns using lead nurturing software like <a class="thirstylink" rel="nofollow" target="_blank" href="https://www.housingwire.com/goto/real-geeks-real-estate-farming/" data-shortcode="true">RealGeeks</a> to organize and track every digital outreach attempt or “touch.” Maintaining an open line of digital communication through email and text will also be your method of reaching prospects when announcing Open Houses and other events throughout the year. An informative community newsletter is a great way to stay top-of-mind.</p> <p>Establishing early digital communication with your prospects establishes their expectation that they will hear from you throughout the year (with their consent and opt-in, of course).</p> <h4 class="wp-block-heading" id="h-in-person-events">In-person Events</h4> <p>Then comes the in-real-life (IRL) fun. Give new clients a chance to meet you in person at a community movie night, a seasonal holiday parade or a local sports game. If you want to be truly memorable, come up with a signature event you and your team host every year, quarter or month.</p> <p>For example, Carr describes her company’s <a href="https://youtu.be/mh3O7T7JY80?t=337" target="_blank" rel="noreferrer noopener">monthly ice cream social</a> in the same YouTube interview. On the last Friday of every summer month, her brokerage rents an ice cream truck to host a pop-up event at a community park within her farming area. The experience is memorable, she says, reminiscent of the days an ice cream truck used to drive through her neighborhood as a kid.</p> <h4 class="wp-block-heading" id="h-gifts-amp-branded-marketing">Gifts & Branded Marketing</h4> <p>If a nostalgic ice cream night isn’t your thing, send an annual gift like a holiday cookie tin, a yearly calendar, a summer beach towel or a back-to-school coffee mug tastefully featuring your brokerage’s branding. Send a seasonal cookie tin or a yearly calendar featuring company branding to community members in your farm area.</p> <h4 class="wp-block-heading" id="h-direct-mail">Direct Mail</h4> <p>Postcards, door hangers, and other marketing collateral will require a small investment, allowing you to reach more community members.</p> <figure class="alignleft size-full is-resized"><img decoding="async" width="800" height="800" data-attachment-id="459303" data-permalink="https://www.housingwire.com/?attachment_id=459303" data-orig-file="https://www.housingwire.com/wp-content/uploads/2024/05/Wise-Pelican-logo.jpeg" data-orig-size="800,800" data-comments-opened="1" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-image-title="Wise-Pelican-logo" data-image-description="" data-image-caption="" data-medium-file="https://www.housingwire.com/wp-content/uploads/2024/05/Wise-Pelican-logo.jpeg?w=300" data-large-file="https://www.housingwire.com/wp-content/uploads/2024/05/Wise-Pelican-logo.jpeg?w=800" src="https://www.housingwire.com/wp-content/uploads/2024/05/Wise-Pelican-logo.jpeg" alt="Wise-Pelican-logo" class="wp-image-459303" style="width:130px;height:auto" srcset="https://www.housingwire.com/wp-content/uploads/2024/05/Wise-Pelican-logo.jpeg 800w, https://www.housingwire.com/wp-content/uploads/2024/05/Wise-Pelican-logo.jpeg?resize=150,150 150w, https://www.housingwire.com/wp-content/uploads/2024/05/Wise-Pelican-logo.jpeg?resize=300,300 300w, https://www.housingwire.com/wp-content/uploads/2024/05/Wise-Pelican-logo.jpeg?resize=768,768 768w, https://www.housingwire.com/wp-content/uploads/2024/05/Wise-Pelican-logo.jpeg?resize=650,650 650w" sizes="(max-width: 800px) 100vw, 800px" /></figure> <p>We love Wise Pelican for sending letters and postcards that’ll get noticed. Their oversized postcards are beautifully designed and printed in full-color (on both sides) on high-gloss, heavy card stock. Pricing varies by quantity, but 500 printed postcards shipped to you are just 46 cents each. The same quantity of printed, inserted, stamped and mailed letters are $1.38 each.</p> Check out Wise Pelican</a> <h4 class="wp-block-heading">Social Media</h4> <p>Facebook groups or community websites can provide consistent value and become a go-to resource for nearby residents.</p> <figure class="alignleft size-full is-resized"><img loading="lazy" decoding="async" width="867" height="75" data-attachment-id="415487" data-permalink="https://www.housingwire.com/?attachment_id=415487" data-orig-file="https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Coffee-and-Contracts.png" data-orig-size="867,75" data-comments-opened="1" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-image-title="Logo-Coffee-and-Contracts" data-image-description="" data-image-caption="" data-medium-file="https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Coffee-and-Contracts.png?w=300" data-large-file="https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Coffee-and-Contracts.png?w=867" src="https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Coffee-and-Contracts.png" alt="Logo-Coffee-and-Contracts" class="wp-image-415487" style="width:300px" srcset="https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Coffee-and-Contracts.png 867w, https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Coffee-and-Contracts.png?resize=150,13 150w, https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Coffee-and-Contracts.png?resize=300,26 300w, https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Coffee-and-Contracts.png?resize=768,66 768w" sizes="(max-width: 867px) 100vw, 867px" /></figure> <p>We love Coffee & Contracts for its affordable monthly subscription fee that gives you access to done-for-you, polished and consistently branded social media posts for all your social channels. You get a ton of social post ideas created for you in beautifully designed templates that you can customize with your own brand colors and fonts.</p> Check out Coffee & Contracts</a> <h3 class="wp-block-heading" id="step-5">Step 5 — Calculate your budget and expected ROI</h3> <p>Each of the above ideas comes with an investment of time, money, or both. For instance, Carr <a href="https://www.youtube.com/watch?t=379&v=mh3O7T7JY80&feature=youtu.be">budgets</a> between $5,000 to $8,000 for each of her brokerage’s quarterly events, totaling $32,000 annually.</p> <p>Of course, you can deploy several free real estate marketing tools, including Facebook groups and cost-effective, lead-generating websites with community-focused content.</p> <p><strong>Bottom line: </strong>Know how much you’re willing to spend across all areas — digital marketing ads, marketing collateral, in-person events, novelty items, event rentals, etc. — and determine how many homes you’d need to sell to recoup a return on that investment.</p> <h3 class="wp-block-heading" id="step-6">Step 6 — Start farming</h3> <p>With your plan, budget and knowledge in hand, it’s time to start farming. Begin by introducing yourself to the community, attending local events and gradually rolling out your planned activities. Consistency is key. Be patient and persistent; your efforts will help cultivate a strong presence within your chosen real estate farming area.</p> <h3 class="wp-block-heading" id="step-7">Step 7 — Track and nurture leads</h3> <p>As you develop momentum and add leads to your database, set up a system for regularly tracking and nurturing your relationships. Remember — contacts within your farming area are distinct from others in your CRM; they live in a geographically distinct area (likely your neighborhood!), so your messaging should be more personalized and community-focused.</p> <p>When nurturing leads, tailor your communication to meet your prospects’ needs. Just think, what would your neighbor want to hear? Find natural opportunities to mention market trends in the area, community announcements, events and helpful real estate advice. Keep a detailed record of your interaction with potential clients in your farm area. Include phone calls, emails, door-knocking visits and events, and their responses to your direct mail and email campaigns.</p> <p>Over time, review your interaction records periodically to evaluate which methods are most successful in engaging potential clients. Notice how often people reply to your emails, what information resonates with them, and how many attend your events. Refine your approach based on what the data shows.</p> <hr class="wp-block-separator has-text-color has-alpha-channel-opacity has-background is-style-wide" style="background-color:#313a3d;color:#313a3d"/> <h4 class="wp-block-heading" id="h-related-articles">Related Articles</h4> <div class="qodef-block-container qodef-block-035468ab " > <article class="qodef-blog-item qodef-e qodef-gutenberg-column post-416145 post type-post status-publish format-standard has-post-thumbnail hentry category-real-estate-lead-generation category-real-estate-technology category-vetted tag-buyer-guide"> <a href="https://www.housingwire.com/articles/best-real-estate-crm/"> <img loading="lazy" decoding="async" width="1024" height="576" src="https://www.housingwire.com/wp-content/uploads/2023/11/FeatureImage-best-real-estate-crm.jpg" class="attachment-full size-full" alt="FeatureImage-best-real-estate-crm" srcset="https://www.housingwire.com/wp-content/uploads/2023/11/FeatureImage-best-real-estate-crm.jpg 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data-image-title="FeatureImage-best-real-estate-crm" data-image-description="" data-image-caption="" data-medium-file="https://www.housingwire.com/wp-content/uploads/2023/11/FeatureImage-best-real-estate-crm.jpg?w=300" data-large-file="https://www.housingwire.com/wp-content/uploads/2023/11/FeatureImage-best-real-estate-crm.jpg?w=1024" /> </a> <h5 class="qodef-e-title"> <a class="qodef-e-title-link" href="https://www.housingwire.com/articles/best-real-estate-crm/"> The 11 best real estate CRMs for 2024 </a></h5> </article><article class="qodef-blog-item qodef-e qodef-gutenberg-column post-412947 post type-post status-publish format-standard has-post-thumbnail hentry category-real-estate-lead-generation category-vetted"> <a href="https://www.housingwire.com/articles/real-estate-prospecting-ideas-tips/"> <img loading="lazy" decoding="async" width="1024" height="576" src="https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prosecting-Cover-Image.png" class="attachment-full size-full" alt="Real Estate Prosecting Cover Image" srcset="https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prosecting-Cover-Image.png 1200w, https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prosecting-Cover-Image.png?resize=150,84 150w, https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prosecting-Cover-Image.png?resize=300,169 300w, https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prosecting-Cover-Image.png?resize=768,432 768w, https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prosecting-Cover-Image.png?resize=1024,576 1024w" sizes="(max-width: 1024px) 100vw, 1024px" data-attachment-id="413183" data-permalink="https://www.housingwire.com/articles/real-estate-prospecting-ideas-tips/real-estate-prosecting-cover-image/" data-orig-file="https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prosecting-Cover-Image.png" data-orig-size="1200,675" data-comments-opened="1" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-image-title="Real Estate Prosecting Cover Image" data-image-description="" data-image-caption="" data-medium-file="https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prosecting-Cover-Image.png?w=300" data-large-file="https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prosecting-Cover-Image.png?w=1024" /> </a> <h5 class="qodef-e-title"> <a class="qodef-e-title-link" href="https://www.housingwire.com/articles/real-estate-prospecting-ideas-tips/"> 16 real estate prospecting ideas, tips & tools for 2024 </a></h5> </article><article class="qodef-blog-item qodef-e qodef-gutenberg-column post-412942 post type-post status-publish format-standard has-post-thumbnail hentry category-real-estate-lead-generation category-vetted"> <a href="https://www.housingwire.com/articles/circle-prospecting-real-estate/"> <img loading="lazy" decoding="async" width="1024" height="576" src="https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prospecting.png" class="attachment-full size-full" alt="Real Estate Prospecting" srcset="https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prospecting.png 1200w, https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prospecting.png?resize=150,84 150w, https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prospecting.png?resize=300,169 300w, https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prospecting.png?resize=768,432 768w, https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prospecting.png?resize=1024,576 1024w" sizes="(max-width: 1024px) 100vw, 1024px" data-attachment-id="413077" data-permalink="https://www.housingwire.com/articles/circle-prospecting-real-estate/real-estate-prospecting/" data-orig-file="https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prospecting.png" data-orig-size="1200,675" data-comments-opened="1" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-image-title="Real Estate Prospecting" data-image-description="" data-image-caption="" data-medium-file="https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prospecting.png?w=300" data-large-file="https://www.housingwire.com/wp-content/uploads/2023/11/Real-Estate-Prospecting.png?w=1024" /> </a> <h5 class="qodef-e-title"> <a class="qodef-e-title-link" href="https://www.housingwire.com/articles/circle-prospecting-real-estate/"> 28 real estate circle prospecting ideas, tips, tools & scripts </a></h5> </article> <hr class="wp-block-separator has-text-color has-alpha-channel-opacity has-background is-style-wide" style="background-color:#313a3d;color:#313a3d"/> <h2 class="wp-block-heading" id="real-estate-farming-tools">Real estate farming tools </h2> <p>Whether hosting open houses, first-time homebuyer workshops or seasonal neighborhood events, these tools will help you become a go-to local expert.</p> <h3 class="wp-block-heading" id="h-top-producer">Top Producer</h3> <figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="592" height="100" data-attachment-id="416154" data-permalink="https://www.housingwire.com/articles/best-real-estate-crm/logo-top-producer/" data-orig-file="https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Top-Producer.png" data-orig-size="592,100" data-comments-opened="1" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-image-title="Logo-Top-Producer" data-image-description="" data-image-caption="" data-medium-file="https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Top-Producer.png?w=300" data-large-file="https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Top-Producer.png?w=592" src="https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Top-Producer.png?w=592" alt="Top Producer logo; a real estate CRM or customer relationship management software" class="wp-image-416154" style="width:231px;height:auto" srcset="https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Top-Producer.png 592w, https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Top-Producer.png?resize=150,25 150w, https://www.housingwire.com/wp-content/uploads/2023/11/Logo-Top-Producer.png?resize=300,51 300w" sizes="(max-width: 592px) 100vw, 592px" /></figure> <h4 class="wp-block-heading" id="h-starting-price-399-per-month-for-crm-smart-targeting">Starting price: $399 per month for CRM + Smart Targeting</h4> <figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="680" height="470" data-attachment-id="450512" data-permalink="https://www.housingwire.com/?attachment_id=450512" data-orig-file="https://www.housingwire.com/wp-content/uploads/2024/03/Top-Producer-Smart-Targeting.jpg" data-orig-size="680,470" data-comments-opened="1" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-image-title="Top-Producer-Smart-Targeting" data-image-description="" data-image-caption="" data-medium-file="https://www.housingwire.com/wp-content/uploads/2024/03/Top-Producer-Smart-Targeting.jpg?w=300" data-large-file="https://www.housingwire.com/wp-content/uploads/2024/03/Top-Producer-Smart-Targeting.jpg?w=680" src="https://www.housingwire.com/wp-content/uploads/2024/03/Top-Producer-Smart-Targeting.jpg?w=680" alt="Top-Producer-Smart-Targeting" class="wp-image-450512" style="width:534px;height:auto" srcset="https://www.housingwire.com/wp-content/uploads/2024/03/Top-Producer-Smart-Targeting.jpg 680w, https://www.housingwire.com/wp-content/uploads/2024/03/Top-Producer-Smart-Targeting.jpg?resize=150,104 150w, https://www.housingwire.com/wp-content/uploads/2024/03/Top-Producer-Smart-Targeting.jpg?resize=300,207 300w" sizes="(max-width: 680px) 100vw, 680px" /></figure> <p>Top Producer’s leading-edge AI technology, called Smart Targeting, lets you pinpoint the homeowners with the highest potential for selling their home in your farm area. Top Producer’s CRM software is already an industry favorite but their <br>predictive analytics will be a game-changer for your marketing, lead generation and outreach efforts within your farm area. </p> <h4 class="wp-block-heading" id="h-best-features">Best features:</h4> <ul class="checkmark-icon"><li>Includes Top Producer’s highly popular CRM</li> <li>Uses AI to analyze data & market trends to identify likely sellers</li> <li>Personalized marketing campaigns include online ads, email marketing, postcards, and handwritten letters</li> <li>Automated lead follow-up </li> <li>Can target zip codes or custom farm areas</li></ul> Check out Top Producer</a> <h3 class="wp-block-heading" id="h-lofty">Lofty</h3> <figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="462" height="150" data-attachment-id="437875" data-permalink="https://www.housingwire.com/logo-lofty/" data-orig-file="https://www.housingwire.com/wp-content/uploads/2024/01/Logo-Lofty.png" data-orig-size="462,150" data-comments-opened="1" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-image-title="Logo-Lofty" data-image-description="" data-image-caption="" data-medium-file="https://www.housingwire.com/wp-content/uploads/2024/01/Logo-Lofty.png?w=300" data-large-file="https://www.housingwire.com/wp-content/uploads/2024/01/Logo-Lofty.png?w=462" src="https://www.housingwire.com/wp-content/uploads/2024/01/Logo-Lofty.png?w=462" alt="Logo-Lofty" class="wp-image-437875" style="width:150px" srcset="https://www.housingwire.com/wp-content/uploads/2024/01/Logo-Lofty.png 462w, https://www.housingwire.com/wp-content/uploads/2024/01/Logo-Lofty.png?resize=150,49 150w, https://www.housingwire.com/wp-content/uploads/2024/01/Logo-Lofty.png?resize=300,97 300w" sizes="(max-width: 462px) 100vw, 462px" /></figure> <h4 class="wp-block-heading" id="h-starting-price-inquire">Starting price: Inquire</h4> <p>Lofty is an all-inclusive AI-powered platform tailored specifically for real estate professionals. If you have a marketing need, it’s got the AI-assisted real estate marketing tool for you. Its tools for real estate agents include everything from team collaboration and productivity to lead generation and sales. </p> <h4 class="wp-block-heading" id="h-best-features-0">Best features:</h4> <ul class="checkmark-icon"><li>AI-assisted smart CRM</li> <li>Automated social media marketing and posting</li> <li>“Smart Plans” for lead nurturing and conversion</li> <li>User-friendly agent website with AI-assisted IDX home search</li></ul> Check out Lofty</a> <h3 class="wp-block-heading" id="h-catalyze-ai">Catalyze AI</h3> <figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="356" height="64" data-attachment-id="410559" data-permalink="https://www.housingwire.com/articles/real-estate-lead-generation-ideas/logo-catalyze-ai/" data-orig-file="https://www.housingwire.com/wp-content/uploads/2023/10/Logo-Catalyze-AI.png" data-orig-size="356,64" data-comments-opened="1" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-image-title="Logo-Catalyze-AI" data-image-description="" data-image-caption="" data-medium-file="https://www.housingwire.com/wp-content/uploads/2023/10/Logo-Catalyze-AI.png?w=300" data-large-file="https://www.housingwire.com/wp-content/uploads/2023/10/Logo-Catalyze-AI.png?w=356" src="https://www.housingwire.com/wp-content/uploads/2023/10/Logo-Catalyze-AI.png?w=356" alt="Logo-Catalyze-AI" class="wp-image-410559" style="width:200px" srcset="https://www.housingwire.com/wp-content/uploads/2023/10/Logo-Catalyze-AI.png 356w, https://www.housingwire.com/wp-content/uploads/2023/10/Logo-Catalyze-AI.png?resize=150,27 150w, https://www.housingwire.com/wp-content/uploads/2023/10/Logo-Catalyze-AI.png?resize=300,54 300w" sizes="(max-width: 356px) 100vw, 356px" /></figure> <h4 class="wp-block-heading" id="h-starting-price-360-per-month">Starting price: $360 per month</h4> <p>Catalyze AI is a unique real estate marketing solution for the data-driven agent. The AI-driven tool uses predictive analytics and a dataset of over 400 million data points to identify promising leads who have recently inherited property. It also pulls from event data, historical trends, behavioral analytics and other information, then provides lead suggestions for you within a 50-mile radius. </p> <h4 class="wp-block-heading" id="h-best-features-1">Best features:</h4> <ul class="checkmark-icon"><li>Uses historical data, behavior analytics, event-driven data and real-time insights to provide predictive analysis</li> <li>Predicts high-probability buyers and sellers for efficient lead targeting</li> <li>Access to 400 million data points</li></ul> Check out Catalyze AI</a> <h2 class="wp-block-heading" id="tips-and-best-practices">Real estate farming: Tips and best practices</h2> <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1200" height="675" data-attachment-id="444708" data-permalink="https://www.housingwire.com/articles/real-estate-farming/real-estate-farming-using-geotargeting-in-a-downtown-area/" data-orig-file="https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming-using-geotargeting-in-a-downtown-area.png" data-orig-size="1200,675" data-comments-opened="1" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-image-title="Real Estate Farming using geotargeting in a downtown area" data-image-description="" data-image-caption="" data-medium-file="https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming-using-geotargeting-in-a-downtown-area.png?w=300" data-large-file="https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming-using-geotargeting-in-a-downtown-area.png?w=1024" src="https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming-using-geotargeting-in-a-downtown-area.png?w=1024" alt="Real Estate Farming using geotargeting in a downtown area" class="wp-image-444708" srcset="https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming-using-geotargeting-in-a-downtown-area.png 1200w, https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming-using-geotargeting-in-a-downtown-area.png?resize=150,84 150w, https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming-using-geotargeting-in-a-downtown-area.png?resize=300,169 300w, https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming-using-geotargeting-in-a-downtown-area.png?resize=768,432 768w, https://www.housingwire.com/wp-content/uploads/2024/02/Real-Estate-Farming-using-geotargeting-in-a-downtown-area.png?resize=1024,576 1024w" sizes="(max-width: 1200px) 100vw, 1200px" /></figure> Tip #1: Think long-term</span></span></h3> <p>Real estate farming isn’t the kind of marketing strategy that yields overnight results. Give yourself a year of consistent effort before throwing in the towel or trying a new farming area. Budget-wise, give yourself a year of runway. Evaluate your results monthly and quarterly, looking at the big picture after a year. Only then can you truly decide whether geo-farming gave you the desired results.</p> Tip #2: Start simple</span></span></h3> <p>When you start real estate farming, sending a “Just Sold” postcard when you sell a new house can be a powerful way to debut your services to a new community. A simple postcard announcing new sales serves the community in two ways: 1) It updates them on their neighborhood’s latest average home value, and 2) It introduces them to a new agent (you) should they decide to sell their home soon.</p> Tip #3: Focus on quality and consistency—not just quantity</span></span></h3> <p>There’s a difference between consistency and quantity. Don’t just “spray” your farming area with impersonal, generic postcards to try and reach a massive number of prospects. Similarly, don’t sacrifice quality simply to try and mail something once a week. Be intentional. Choose methods you can execute well and commit to a cadence you can sustainably maintain.</p> <p>Maybe your sweet spot is a monthly or quarterly summary of every home you’ve sold in your targeted area rather than a postcard for every sale. Or perhaps you prefer mailing seasonal cards for holidays, school breaks and special community events instead of linking your mailers to sales. Whatever your strategy, pick something you know you can commit to — and become known for it.<br><br>According to recent <a href="https://www.nar.realtor/research-and-statistics/research-reports/home-buyer-and-seller-generational-trends" target="_blank" rel="noreferrer noopener">National Association of Realtors</a> data, only 26% of home buyers are first-timers. So, if you’re already offering first-time homebuyer workshops in your local community, broadening such events to include activities that all community members can participate in will help you reach a broader demographic of buyers and sellers.</p> Tip #4: Get resourceful</span></span></h3> <p>Don’t limit yourself to the most expensive mailers or big-budget events. You can start real estate farming by simply introducing yourself to parents at your child’s school. One pair of realtors, Alissa and Katy of the <a href="https://hustlehumblypodcast.com/142-2/" target="_blank" rel="noreferrer noopener">Hustle Humbly Podcast</a>, mention that simply serving as secretary of your local Parent Teacher Association (PTA) or another community group “counts” as farming since it provides natural, conversational opportunities to bring up your work and answer prospective clients’ questions.</p> <h2 class="wp-block-heading" id="faqs">Real Estate Farming FAQs</h2> Generally speaking, real estate agents advise aiming for neighborhoods with at least a 6% turnover rate for the highest probability of success. <hr class="wp-block-separator has-text-color has-alpha-channel-opacity has-background is-style-wide" style="background-color:#313a3d;color:#313a3d"/> <h4 class="wp-block-heading" id="h-related-articles-0">Related Articles</h4> <div class="qodef-block-container qodef-block-36433246 " > <article class="qodef-blog-item qodef-e qodef-gutenberg-column post-418432 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data-medium-file="https://www.housingwire.com/wp-content/uploads/2023/11/Lead-generation-companies.png?w=300" data-large-file="https://www.housingwire.com/wp-content/uploads/2023/11/Lead-generation-companies.png?w=1024" /> </a> <h5 class="qodef-e-title"> <a class="qodef-e-title-link" href="https://www.housingwire.com/articles/top-real-estate-lead-generation-companies/"> The 9 top real estate lead generation companies for 2024 </a></h5> </article> <hr class="wp-block-separator has-text-color has-alpha-channel-opacity has-background is-style-wide" style="background-color:#313a3d;color:#313a3d"/> <style>.wp-block-details.toc-accordion summary { cursor: pointer !important; font-size: 1.5rem !important; font-weight: 700 !important; font-family: Poppins, sans-serif !important;}.wp-block-details.toc-accordion summary ul.arrow-list li{ margin-bottom: 0px !important;}.wp-block-details.toc-accordion summary ul.arrow-list li{ margin-bottom: 0px !important;}.grid-container.faq { margin: 35px 0px 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margin-bottom: 40px; padding: 15px; padding-left: 2em; background-color: #e5e2de; transition: height 3s ease-in; font-size: 1.5rem; font-weight: 500 !important; border-bottom: 1px solid #a3a3a3;}.wp-block-details.toc-accordion-2 summary { font-weight: 700; font-size: 1.5rem;}.wp-block-details.toc-accordion-2 summary:after{ content: "+"; position: absolute; left: 15px; top: 22px; font-size: 22px; font-weight: 500; background-color: #bc2f2f; color: #fff !important; width: 22px; height: 22px; text-align: center; line-height: 24px; border-radius: 5px;}details.toc-accordion-2[open] > summary:after{ content: "-" !important; font-weight: 600 !important;}.wp-block-details.toc-accordion-2 summary:before { content: "Show"; margin-right: 7px;}details.toc-accordion-2[open] > summary:before { content: "Hide"; margin-right: 7px;}/* ---------- ARROW ---------- */ul.arrow-list { padding-left: 30px; margin-top: 20px;}ul.arrow-list li { list-style: none; background-image: url(https://www.housingwire.com/wp-content/uploads/2023/10/icon-arrow-black.png); background-repeat: no-repeat; background-size: 0.9em; -webkit-padding-start: 30px; padding-inline-start: 30px; background-position-y: 15px; padding-bottom: 8px; padding-top: 8px; border-bottom: none !important; font-size: 18px !important; line-height: 22px !important; font-weight: normal !important;}ul.arrow-list li ul { padding-left: 10px !important;}ul.arrow-list li ul li{ background-size: 0.6em; border-bottom: none !important;}@media only screen and (max-width:768px) { ul.arrow-list { padding-left: 10px; margin-top: 10px; } ul.arrow-list li { padding-bottom: 5px; font-size: 1rem !important; }}</style>]]></content:encoded> <post-id xmlns="com-wordpress:feed-additions:1">437808</post-id> </item> <item> <title>Zillow believes the evolution of the industry will only help it grow</title> <link>https://www.housingwire.com/articles/zillow-believes-the-evolution-of-the-industry-will-only-help-it-grow/</link> <comments>https://www.housingwire.com/articles/zillow-believes-the-evolution-of-the-industry-will-only-help-it-grow/#respond</comments> <dc:creator><![CDATA[Brooklee Han]]></dc:creator> <pubDate>Thu, 02 May 2024 00:14:46 +0000</pubDate> <category><![CDATA[Legal]]></category> <category><![CDATA[Real Estate]]></category> <category><![CDATA[Yahoo Finance]]></category> <category><![CDATA[Commission Lawsuit]]></category> <category><![CDATA[National Association of Realtors]]></category> <category><![CDATA[Zillow]]></category> <category><![CDATA[Zillow Premier Agent]]></category> <guid isPermaLink="false">https://www.housingwire.com/?p=459235</guid> <description><![CDATA[“Of the approximately 1.5 million real estate license holders, many handle only one or two transactions a year. These are not our Premier Agent partners,” Zillow's Rich Barton said.]]></description> <content:encoded><![CDATA[<p>In light of the <a href="https://www.housingwire.com/articles/missouri-jury-finds-nar-brokerages-guilty-of-conspiring-to-inflate-commissions/#:~:text=A%20Kansas%20City%20jury%20took,Burnett%20buyer%20broker%20commission%20lawsuit." target="_blank" rel="noreferrer noopener">jury verdict</a> in the Sitzer/Burnett suit and the terms of the <strong><a href="https://www.housingwire.com/tag/national-association-of-realtors/" target="_blank" rel="noreferrer noopener">National Association of Realtor’s</a></strong> nationwide <a href="https://www.housingwire.com/articles/nar-settles-commission-lawsuits-for-418-million/#:~:text=The%20National%20Association%20of%20Realtors,of%20compensation%20to%20buyer%20brokers." target="_blank" rel="noreferrer noopener">settlement agreement</a> of the <a href="https://www.housingwire.com/commission-lawsuits/" target="_blank" rel="noreferrer noopener">commission lawsuits</a>, several prominent industry analysts believe <strong><a href="https://www.housingwire.com/tag/zillow/" target="_blank" rel="noreferrer noopener">Zillow</a></strong> will <a href="https://www.housingwire.com/articles/zillow-or-costar-nar-settlement-terms-could-determine-a-winner/" target="_blank" rel="noreferrer noopener">struggle with its financial performance.</a></p> <p>On Wednesday evening, during the firm’s <a href="https://investors.zillowgroup.com/investors/news-and-events/news/news-details/2024/Zillow-Group-Reports-First-Quarter-2024-Financial-Results/default.aspx" target="_blank" rel="noreferrer noopener">Q1 2024</a> earnings call with investor and analysts, CEO Rich Barton took a contrary view: Zillow is just beginning to unlock its revenue generating potential.</p> <p>“In a hostile housing market and a noisy industry environment, why is Zillow outperforming?” he posited. “The simple answer is that Zillow is wholly focused on solving real consumer problems with software. In a giant industry that has historically had very little R&D investment, digitally re-platforming and integrating a huge disparate local industry where transactions are relatively infrequent is an audacious undertaking. We are advantaged primarily because we are a product and technology company first.”</p> <p>While Zillow’s net loss of $23 million for the quarter, which was up from its net loss of $22 million in Q1 2023, did not necessarily reflect Barton’s confidence, the firm’s 13% annual increase in revenue to $529 million did. During the first quarter of 2024, Zillow recorded revenue growth across all sectors of its business, including a 31% annual jump in its rentals revenue to $97 million and a 19% year-over-year increase in its mortgage revenue to $31 million.</p> <p>Zillow’s residential revenue, which still makes up the vast majority of the company’s revenue, also posted an increase, rising 9% on a yearly basis to $393 million.</p> <p>On the call, Barton said that Zillow’s technology has helped it earn consumer trust, putting it “in the enviable position of having a large enough audience” that comes organically.</p> <p>“The product led organic marketing growth story is rare, but it is common for the great ones. Those are the products and brands we admire the most,” Barton said. “Those who have followed us for a long time know how aggressive and innovative we have been, methodically converting our sticky audience into revenue. We have built a substantial, growing, diverse, EBITDA profitable business, yet we still monetize only a small share of our audience. Our massive unconverted audience will drive years of growth ahead for Zillow.”</p> <p>Barton also touched upon the terms of NAR’s settlement agreement. According to Barton, the “substance of the settlement” is a “very reasonable middle path forward for the industry, where commissions are communicated between sellers and buyers and both parties are better educated.”</p> <p>“This is a <a href="https://www.housingwire.com/articles/executives-look-for-silver-linings-of-commission-lawsuits/" target="_blank" rel="noreferrer noopener">positive evolutionary step</a> for the industry,” Barton added.</p> <p>However, Barton noted that he and the team at Zillow do not see the changes outlined in NAR’s settlement agreement as revolutionary.</p> <p>“Clear and negotiable compensation fits quite well with our published consumer advocacy marketplace principles of free access to listings, independent representation and negotiable compensation,” Barton said.</p> <p>As such, Barton said he is confident that Zillow will benefit from this evolution.</p> <p>“We have the most and highest intent customers in real estate, we work with the most productive agents and we provide them with exceptional technology to make their lives more efficient,” Barton said.</p> <p>In particular, Barton highlighted Zillow’s Premier Agent program, which sells buy-side leads to agents who are part of the Premier Agent network. Due to this program’s heavy reliance on homebuyers using real estate agents in their homebuying journey, some analysts have become critical of this model in light of the commission lawsuits.</p> <p>“Of the approximately 1.5 million real estate license holders, many handle only one or two transactions a year. These are not our Premier Agent partners,” Barton said. “Eighty-percent of all real estate transactions across the U.S. are done by the top 20% of agents and team and today, nearly four out of five Zillow Premier Agent partners fall into that top tier.”</p> <p>Barton added that since 2015, Zillow has shrunk its Premier Agent partner base by roughly 60%, while increased its Premier Agent revenue by more than 2.5 times.</p> <p>Zillow executives also discussed its newly launched “<a href="https://www.housingwire.com/articles/zillow-launches-buyer-agreement-for-home-tours/" target="_blank" rel="noreferrer noopener">Touring Contract</a>,” noting that prospective homebuyers would not be required by Zillow to sign its touring contract in order book a home tour.</p> <p>“Such agreement can help educated buyers about what services they are paying for, which is a good thing, and they have the added benefit of helping identify high intent buyers,” Jeremy Wacksman, the chief operating officer at Zillow, said of buyer representation agreements.</p> <p>Looking ahead, Zillow executives said they are continuing to focus on the firm’s five growth pillars of touring, financing, seller solutions, enhancing its partner network and rentals.</p> <p>“It is noisy out there and there is a lot of confusion and there is a lot of distraction, but I’ll tell you that we are calm,” Barton said. “We are driving forward, we are putting up numbers, the product is bettering better and better and we have a long road ahead of us because of all of this incredible kind of pent up potential transaction energy that lives inside our wonderful marketplace.”</p>]]></content:encoded> <wfw:commentRss>https://www.housingwire.com/articles/zillow-believes-the-evolution-of-the-industry-will-only-help-it-grow/feed/</wfw:commentRss> <slash:comments>0</slash:comments> <post-id xmlns="com-wordpress:feed-additions:1">459235</post-id> </item> <item> <title>All parties have settled the Sitzer/Burnett suit, so what’s next?</title> <link>https://www.housingwire.com/articles/all-parties-have-settled-the-sitzer-burnett-suit-so-whats-next/</link> <comments>https://www.housingwire.com/articles/all-parties-have-settled-the-sitzer-burnett-suit-so-whats-next/#respond</comments> <dc:creator><![CDATA[Brooklee Han]]></dc:creator> <pubDate>Wed, 01 May 2024 21:32:50 +0000</pubDate> <category><![CDATA[Legal]]></category> <category><![CDATA[Real Estate]]></category> <category><![CDATA[Commission Lawsuit]]></category> <category><![CDATA[HomeServices of America]]></category> <category><![CDATA[National Association of Realtors]]></category> <category><![CDATA[Steve Murray]]></category> <guid isPermaLink="false">https://www.housingwire.com/?p=459207</guid> <description><![CDATA[Industry experts discuss the litigation calendar and what real estate agents should focus their energy on now that all parties have settled.]]></description> <content:encoded><![CDATA[<p>When <strong><a href="https://www.housingwire.com/tag/homeservices-of-america/" target="_blank" rel="noreferrer noopener">HomeServices of America</a></strong> reached a <a href="https://www.housingwire.com/articles/homeservices-settles-commission-lawsuits-for-250m/" target="_blank" rel="noreferrer noopener">nationwide settlement agreement</a> last week in the <a href="https://www.housingwire.com/commission-lawsuits/" target="_blank" rel="noreferrer noopener">commission lawsuits</a> filed by home sellers, it became the final defendant in the two original commission cases, Sitzer/Burnett and Moehrl, to do so.</p> <p>Just six months ago, when a Missouri jury found HomeServices of America, <strong>Keller Williams</strong> and the <strong><a href="https://www.housingwire.com/tag/national-association-of-realtors/" target="_blank" rel="noreferrer noopener">National Association of Realtors</a></strong> (NAR) liable for <a href="https://www.housingwire.com/articles/missouri-jury-finds-nar-brokerages-guilty-of-conspiring-to-inflate-commissions/" target="_blank" rel="noreferrer noopener">colluding to artificially inflate real estate agent commissions</a>, the industry’s path forward was very murky. Not only was there uncertainty surrounding <a href="https://www.housingwire.com/articles/what-an-appeal-of-the-1-8b-sitzer-burnett-commission-lawsuit-verdict-will-look-like/" target="_blank" rel="noreferrer noopener">potential appeals</a>, but there were questions as to how the defendants would pay for the potent $5.3 billion in damages, as well as what the judge’s final ruling would look like.</p> <p>Although the settlement agreements are still awaiting final approval from Judge Stephen R. Bough, who oversaw the Sitzer/Burnett trial (and the HomeServices settlement is still awaiting preliminary approval), they have given the real estate industry a road map for how to begin moving forward. There is a clearer picture of what comes next on the litigation calendar —most notably eliminating the uncertainty of the <a href="https://www.housingwire.com/articles/moehrl-trial-not-likely-until-january-2025/" target="_blank" rel="noreferrer noopener">Moehrl suit trial timeline</a>.</p> <p>First up on the calendar is <a href="https://www.housingwire.com/articles/final-approval-hearing-date-set-for-re-max-anywhere-commission-lawsuit-settlements/" target="_blank" rel="noreferrer noopener">May 9, 2024</a>, the date of the final approval hearing for the settlement agreements reached by <strong>Anywhere</strong>, <strong><a href="https://www.housingwire.com/tag/re-max/" target="_blank" rel="noreferrer noopener">RE/MAX</a></strong> and Keller Williams. Anywhere and RE/MAX settled in the early fall of 2023 prior to the mid-October start date of the Sitzer/Burnett trial, while Keller Williams did not decide to <a href="https://www.housingwire.com/articles/keller-williams-settles-the-sitzer-burnett-commission-lawsuit-for-70-million/" target="_blank" rel="noreferrer noopener">settle the commission lawsuits</a> until February 2024, months after the trial had concluded.</p> <p>“Since entering into <a href="https://www.housingwire.com/articles/re-max-settles-buyer-broker-commission-lawsuits-for-55-million/" target="_blank" rel="noreferrer noopener">the settlement</a> in September of 2023, RE/MAX has been committed to obtaining final approval,” a RE/MAX spokesperson wrote in an email. “We are hopeful that final approval is granted, and we can move forward with full focus on supporting our affiliates and continuing to foster greater transparency in the industry. RE/MAX believes that whatever changes come to the industry, the invaluable contributions of real estate agents will endure.”</p> <p>Representatives for Anywhere and Keller Williams declined to comment on the fast-approaching hearing date.</p> <p>Missing from next week’s settlement approval hearing are the agreements reached by <a href="https://www.housingwire.com/articles/nar-settles-commission-lawsuits-for-418-million/">NAR</a> and HomeServices of America. As these parties only recently filed their settlement agreements, with NAR’s receiving <a href="https://www.housingwire.com/articles/judge-grants-preliminary-approval-of-nar-commission-lawsuit-settlement/" target="_blank" rel="noreferrer noopener">preliminary approval</a> from the court last week, they will not be up for final approval for quite some time. </p> <p>According to court documents, the final approval hearing for NAR’s settlement is set for Nov. 26, 2024, while a spokesperson for HomeServices of America said the firm “expects a final approval hearing scheduled between late November and December” of this year.</p> <p>The statement from HomeServices of America comes despite the firm’s settlement agreement having not yet received preliminary approval from the court.</p> <p>Chris Kelly, an executive vice president at HomeServices of America, wrote in an email that the firm is “confident” its agreement will receive preliminary approval from the court.</p> <p>“The settlement emerged from extensive, transparent, and honest negotiations, and we firmly believe the court will recognize that it serves the best interests of the class,” Kelly wrote. “Looking ahead, this settlement provides our companies, agents, and franchisees with a greater sense of certainty, enabling us to focus on delivering exceptional service to our clients in a rapidly evolving real estate market.”</p> <p>NAR has <a href="https://cdn.nar.realtor/sites/default/files/documents/nar-settlement-timeline-2024-04-23.pdf?_gl=1*548qu7*_gcl_au*MTEyNDc4NzgxOS4xNzEyMTU4ODA3" target="_blank" rel="noreferrer noopener">outlined an estimated timeline</a> of key upcoming milestones in the litigation process between now and the end of November. Notable deadlines include June 18, which is the opt-in deadline for Realtor-affiliated MLSs, non-Realtor MLSs and brokerages with more than $2 billion in transaction volume in 2022 to be included as a released party under NAR’s settlement, </p> <p>In late July, NAR anticipates that the business practice changes outlined in its settlement agreement will be implemented. Realtor-affiliated MLSs, as well as the non-Realtor MLSs and brokerages that opt in, will have until roughly Sept. 16 to implement these changes.</p> <p>Additionally, NAR’s timeline notes that the plaintiffs may begin issuing class notices, similar to the postcards sent to homeowners in February regarding the RE/MAX, Anywhere and Keller Williams settlements.</p> <p><a href="https://www.housingwire.com/articles/kevin-sears-pulls-back-the-curtain-on-nars-commission-lawsuit-settlement/" target="_blank" rel="noreferrer noopener">Speaking at</a> <strong>HousingWire’s</strong> The Gathering last week just hours after news broke that the court had granted preliminary approval of the trade group’s settlement agreement, NAR President Kevin Sears said he was “very satisfied” by the news, but his main focus was clearly on the agreement being granted final approval.</p> <p>“The sooner that we can get this final approval in, the sooner we can let our agents have this in the rearview mirror, and they can continue to work and continue to help consumers navigate what is likely the biggest financial transaction of their lives,” Sears said.</p> <p>Although it is not a given that Bough will grant final approval to any of the settlement agreements — especially as the <strong><a href="https://www.housingwire.com/tag/department-of-justice/" target="_blank" rel="noreferrer noopener">Department of Justice</a></strong> may <a href="https://www.housingwire.com/articles/now-unshackled-the-doj-casts-a-large-shadow-over-the-commission-lawsuit-settlement/" target="_blank" rel="noreferrer noopener">choose to intervene</a> by filing a statement of interest as it did in the <a href="https://www.housingwire.com/articles/doj-advocates-for-prohibition-of-cooperative-compensation-in-nosalek-commission-lawsuit/" target="_blank" rel="noreferrer noopener">Nosalek commission lawsuit</a> — industry veteran <a href="https://www.housingwire.com/tag/steve-murray/" target="_blank" rel="noreferrer noopener">Steve Murray</a>, the co-founder of <strong>RealTrends Consulting</strong>, is fairly optimistic.</p> <p>“I think he is going to approve it,” Murray said. “He has now granted preliminary approval on four occasions, so I am assuming he will grant final approval. Most of the people in the industry that I am talking to, as well as some antitrust attorneys, also feel that they will be approved.”</p> <p>Despite Murray’s optimism, there is the chance that Bough may not approve of the settlement agreements, as he could take issue with the agreed-upon monetary amounts or the business practice changes outlined in the agreements. If Bough does not grant final approval of any or all of the settlement agreements, he will tell the parties what his issues are, giving them the chance to go back to the table and renegotiate the agreements.</p> <p>For many, the DOJ is the main potential wildcard in this situation, but <a href="https://www.saul.com/professionals/francis-x-riley-iii" target="_blank" rel="noreferrer noopener">Trip Riley</a>, a partner at <strong>Saul Ewing LLP</strong>, also said to keep an eye on the objections filed against the settlement agreements. So far, the vast majority of the objections on the court docket have come from private citizens. But last month, homebuilder <strong><a href="https://www.housingwire.com/tag/pultegroup/" target="_blank" rel="noreferrer noopener">PulteGroup</a></strong> <a href="https://www.housingwire.com/articles/major-homebuilder-objects-to-proposed-nar-settlement/" target="_blank" rel="noreferrer noopener">filed an objection</a>, claiming that it does not have enough information to adequately determine the amount of money it could recover, among other issues.</p> <p>“First, the settlement agreements exclude key information about the method of allocating funds, details necessary for Pulte to evaluate its expected recovery,” the company’s attorneys wrote in the filing. “Second, the settlement agreements envision claims made through a hand-filled claim form, a needless and time-consuming complication for a homebuilder that will be downloading this information from computer databases.”</p> <p>“I think what will be interesting is who may object to all or some of the settlements, such as builder associations and/or lenders that have large REO portfolios,“ Riley wrote in an email. “They will have to think long and hard about the relationship tarnishing effect that may have: Large builders like <strong><a href="https://www.housingwire.com/tag/lennar/">Lennar</a></strong> have had strong relationships with large brokerages.”</p> <p>Although it is tempting to sit back as the industry waits to see if the settlement agreements will receive final approval from the court, <a href="https://www.housingwire.com/articles/the-industry-needs-to-speak-out-about-the-consequences-of-the-commission-lawsuits-brokerage-leaders/" target="_blank" rel="noreferrer noopener">James Dwiggins</a>, CEO and co-founder of <strong><a href="https://www.housingwire.com/podcast/james-dwiggins-on-creating-real-change-after-the-commission-lawsuit-settlements/" target="_blank" rel="noreferrer noopener">NextHome</a></strong>, said that now is the time for the industry to start advocating for itself and for the clients it serves.</p> <p>“We are really concerned about whether the buyer can afford representation in a world where, if a seller doesn’t want to offer anything, then the buyer is on their own,” Dwiggins said. “The big concern is that there are significant consequences here if the federal government doesn’t create a way for <a href="https://www.housingwire.com/articles/nar-wants-va-to-change-rules-that-prohibit-veteran-buyers-from-paying-broker-commissions/" target="_blank" rel="noreferrer noopener">veterans</a> to be able to pay for representation and for consumers to pay for representation.”</p> <p>Dwiggins noted that unrepresented buyers also pose a major threat to the industry. When they are involved in a transaction, the risk of litigation increases.</p> <p>“The government is either going to be proactive or there are going to be a lot of people getting screwed, causing a lot of noise, and then Congress will step in and instruct the GSEs to make changes,” Dwiggins said.</p> <p>Due to this, Dwiggins said now is the time for the industry to shift its focus to being a better advocate for buyers and sellers.</p> <p>“If we can start to position ourselves in that process, we are strategically setting ourselves up right for the future,” Dwiggins said. “It is not about our own needs. It is about our customers’ needs, and I think the more we focus on the consumer in the way we do everything, I think we will position ourselves very well in the future as people will see that we are advocates for them.”</p>]]></content:encoded> <wfw:commentRss>https://www.housingwire.com/articles/all-parties-have-settled-the-sitzer-burnett-suit-so-whats-next/feed/</wfw:commentRss> <slash:comments>0</slash:comments> <post-id xmlns="com-wordpress:feed-additions:1">459207</post-id> </item> <item> <title>Longtime reverse mortgage leader Scott Norman appointed CEO of Texas MBA</title> <link>https://www.housingwire.com/articles/longtime-reverse-mortgage-leader-scott-norman-appointed-ceo-of-texas-mba/</link> <comments>https://www.housingwire.com/articles/longtime-reverse-mortgage-leader-scott-norman-appointed-ceo-of-texas-mba/#respond</comments> <dc:creator><![CDATA[Chris Clow]]></dc:creator> <pubDate>Wed, 01 May 2024 21:06:15 +0000</pubDate> <category><![CDATA[People Movers]]></category> <category><![CDATA[Reverse]]></category> <category><![CDATA[Finance of America Companies]]></category> <category><![CDATA[Finance of America Reverse]]></category> <category><![CDATA[NRMLA]]></category> <category><![CDATA[Texas]]></category> <guid isPermaLink="false">https://www.housingwire.com/?p=459170</guid> <description><![CDATA[Norman has had an influential role in the reverse mortgage industry, including five terms as co-chair of NRMLA.]]></description> <content:encoded><![CDATA[<p>Longtime reverse mortgage industry professional, advocate and leader Scott Norman has been appointed as the new CEO of the <strong>Texas Mortgage Bankers Association</strong> (TMBA).</p> <p>Norman is currently serving his fifth consecutive term as co-chair of the <a href="https://www.housingwire.com/tag/nrmla/" target="_blank" rel="noreferrer noopener"><strong>National Reverse Mortgage Lenders Association</strong></a> (NRMLA). He also works as vice president of field retail and director of government relations at <a href="https://www.housingwire.com/tag/finance-of-america-companies/" target="_blank" rel="noreferrer noopener"><strong>Finance of America Reverse</strong></a> (FAR). </p> <p>Leadership at TMBA unanimously approved Norman’s appointment on April 24, and he is expected to begin serving in his new role on May 2, when he will cease to be an active employee of FAR.</p> <h2 class="wp-block-heading" id="h-appointment-to-tmba">Appointment to TMBA</h2> <p>Norman previously served as president of TMBA in 2011. He was selected from a pool of candidates submitted to the association by a search advisory committee.</p> <p>“Scott Norman brings industry knowledge and experience along with a passion for our association and its members to his new role as CEO,” TMBA President Matt Kiker said. “We are grateful for the leadership and stability that the association has enjoyed over the past 25 years under Lisa Vercher and with Scott Norman, we are excited about our future. We appreciate the dedication and diligence of our search advisory committee throughout this process.”</p> <p>Norman has been a longtime fixture of the reverse mortgage industry, FAR and NRMLA. He remains a fierce advocate for the wider adoption of reverse mortgages and served <a href="https://www.housingwire.com/articles/scott-norman-what-it-was-like-to-originate-texass-first-reverse-mortgage/" target="_blank" rel="noreferrer noopener">an influential role</a> in amending the Texas Constitution in 1999 to allow for reverse mortgages. Norman also originated the state’s first reverse mortgage soon afterward in late 2000.</p> <h2 class="wp-block-heading" id="h-reflections-on-a-reverse-career">Reflections on a reverse career</h2> <p>When reached by RMD, Norman expressed appreciation for his time in the reverse mortgage industry, his colleagues at NRMLA and FAR, and his career journey up to this point.</p> <p>“This is an incredibly bittersweet week for me,” Norman told RMD in an email. “From countless trips to Washington, D.C. to the 26 states I visited during my time as co-chairman, I have some amazing memories and friendships that I will take with me. I started my journey with Jim Mahoney with <strong>Financial Freedom</strong> and ended it with Kristen Sieffert with Finance of America, so I learned from two of the real giants in our industry.”</p> <figure class="alignright size-large is-resized"><img loading="lazy" decoding="async" width="400" height="400" data-attachment-id="435027" data-permalink="https://www.housingwire.com/articles/reverse-mortgage-professionals-see-rising-interest-in-private-products/scottnorman_far/" data-orig-file="https://www.housingwire.com/wp-content/uploads/2024/01/scottnorman_far.jpg" data-orig-size="400,400" data-comments-opened="1" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-image-title="scottnorman_far" data-image-description="<p>Scott Norman, former VP at Finance of America Reverse (FAR), and former co-chair of the National Reverse Mortgage Lenders Association (NRMLA).</p>" data-image-caption="<p>Scott Norman</p>" data-medium-file="https://www.housingwire.com/wp-content/uploads/2024/01/scottnorman_far.jpg?w=300" data-large-file="https://www.housingwire.com/wp-content/uploads/2024/01/scottnorman_far.jpg?w=400" src="https://www.housingwire.com/wp-content/uploads/2024/01/scottnorman_far.jpg?w=400" alt="Scott Norman, former VP at Finance of America Reverse (FAR), and former co-chair of the National Reverse Mortgage Lenders Association (NRMLA)." class="wp-image-435027" style="width:200px" srcset="https://www.housingwire.com/wp-content/uploads/2024/01/scottnorman_far.jpg 400w, https://www.housingwire.com/wp-content/uploads/2024/01/scottnorman_far.jpg?resize=150,150 150w, https://www.housingwire.com/wp-content/uploads/2024/01/scottnorman_far.jpg?resize=300,300 300w" sizes="(max-width: 400px) 100vw, 400px" /><figcaption class="wp-element-caption">Scott Norman</figcaption></figure> <p>Norman also lauded his fellow co-chair, Mike Kent of <strong>PHH/Liberty Reverse Mortgage</strong>, and the NRMLA organization.</p> <p>“As the co-chairman of NRMLA, I had the good fortune to share the very best job in the industry with my brother Mike Kent. I’ve had an amazingly unique vantage point of our industry for the last five years, and I can’t imagine a company who can’t benefit from being a member of NRMLA.”</p> <p>Norman also wanted to thank the organization’s executive committee, vowing to remain supportive of the trade association.</p> <p>“I can’t let my term end without specifically recognizing those on the executive committee: Joey Demarkey, Mike McCully, Bobby Sivori, Elly ‘Rella’ Johnson, Jimmy Cory, Alex Pistone, Chris Mayer, Peter Bell and especially Steve Irwin for their friendship, leadership and support – as well as Jim Brodsky, Soroush Shahin Joel Schiffman for their always-wise advice. </p> <p>“And of course, my friend Darryl Hicks,” he added. “While I may be leaving the reverse space, I’m not leaving the arena. In my new role with the TMBA, I will continue to follow and support NRMLA at every turn.”</p> <p>Finance of America President Kristen Sieffert described Norman as a key figure for both the company and the wider industry.</p> <p>“Scott has devoted much of his career to championing the adoption of reverse mortgages so that more Americans can have better financial outcomes in retirement,” she said. “For many years, FAR has had a front row seat to Scott’s vision, insight and passion for this business — to the great benefit of our company, employees, customers, partners and the industry — and for that we are infinitely grateful. </p> <p>“While we are sad to see him go, we wish him all the best on his next endeavor and we look forward to continuing to jointly advocate for broader awareness, education and adoption of reverse mortgages.”</p> <h2 class="wp-block-heading" id="h-other-accomplishments">Other accomplishments</h2> <p>Norman’s 30-year mortgage career includes his start as a loan officer for <strong>Temple-Inland Mortgage Corp</strong>. He later became president of the <strong>Austin Mortgage Bankers Association</strong>, and in 2017 became a recipient of TMBA’s Larry E. Temple Award, which recognizes contributions to the mortgage banking industry in Texas.</p> <p>In 2014, Norman played a role in advocating for the addition of reverse mortgages for purchase to the allowable offerings in Texas, which <a href="https://www.housingwire.com/articles/lenders-begin-offering-reverse-mortgage-for-purchase-in-texas/" target="_blank" rel="noreferrer noopener">required legislative action</a> and voter approval. Norman first ascended to the NRMLA co-chair position <a href="https://www.housingwire.com/articles/nrmla-board-elects-jahangiri-norman-as-co-chairs/" target="_blank" rel="noreferrer noopener">in 2018</a>.</p> <p>NRMLA <a href="https://www.housingwire.com/articles/nrmla-re-elects-norman-kent-as-co-chairs-for-2023-2024-term/" target="_blank" rel="noreferrer noopener">reelected Norman</a> late last year as co-chair of its board of directors for the 2023-2024 term alongside Kent of PHH/Liberty Reverse Mortgage. Norman has been a consistent supporter of RMD for years, offering his perspective to this publication’s reporting on numerous occasions.</p> <p>“I got into the reverse mortgage industry when I was in my 20s. So, to some extent, it’s been the only real industry I’ve ever been a part of,” Norman told RMD in <a href="https://www.housingwire.com/articles/changemakers-2020-scott-norman-vp-field-retail-and-director-government-relations-at-finance-of-america-reverse/" target="_blank" rel="noreferrer noopener">a 2020 interview</a>. “I’ve been really fortunate to work for some great companies, and to work for some great mentors. Jim Mahoney at Financial Freedom sticks out quickly. The Bart Johnsons, the Peter Bells, the Jim Brodskys — I’ve had some great mentors that really helped to raise me, if you will.</p> <p>“Almost across the board, they ingrained in me two things: the importance of fostering great relationships and always treating your borrowers like you would your own parents. Never does a day go by when I don’t think about both.”</p>]]></content:encoded> <wfw:commentRss>https://www.housingwire.com/articles/longtime-reverse-mortgage-leader-scott-norman-appointed-ceo-of-texas-mba/feed/</wfw:commentRss> <slash:comments>0</slash:comments> <post-id xmlns="com-wordpress:feed-additions:1">459170</post-id> </item> <item> <title>Rates at 7% attract different types of borrowers, forcing lenders to rethink profit strategies</title> <link>https://www.housingwire.com/articles/rates-at-7-attract-different-types-of-borrowers-forcing-lenders-to-rethink-profit-strategies/</link> <comments>https://www.housingwire.com/articles/rates-at-7-attract-different-types-of-borrowers-forcing-lenders-to-rethink-profit-strategies/#respond</comments> <dc:creator><![CDATA[Flávia Furlan Nunes]]></dc:creator> <pubDate>Wed, 01 May 2024 20:48:17 +0000</pubDate> <category><![CDATA[LendingLife]]></category> <category><![CDATA[Mortgage]]></category> <category><![CDATA[Origination]]></category> <category><![CDATA[30-Year Fixed Mortgage]]></category> <category><![CDATA[Federal Open Market Committee]]></category> <category><![CDATA[Federal Reserve]]></category> <guid isPermaLink="false">https://www.housingwire.com/?p=459173</guid> <description><![CDATA[The Federal Reserve's recent moves have supported average mortgage rates at the mid-7% level]]></description> <content:encoded><![CDATA[<p>Industry experts believe <a href="https://www.housingwire.com/tag/mortgage-rates/">mortgage rates</a> will remain higher for longer, attracting borrowers who face life events but not “economic gamers“ to the mortgage market. In turn, this will force some lenders to think out of the box to attain profitability.</p> <p>On Wednesday afternoon, the <strong><a href="https://www.housingwire.com/tag/federal-reserve/" target="_blank" rel="noreferrer noopener">Federal Reserve</a></strong> <a href="https://www.housingwire.com/articles/fed-holds-rates-steady-for-the-sixth-straight-time/" target="_blank" rel="noreferrer noopener">announced</a> its decision to maintain its short-term policy interest rate at a range of 5.25% to 5.5% for a sixth consecutive meeting, due in part to resilient inflation. Many monetary policy observers are betting on only one rate cut this year, far lower than the five or six cuts expected at the end of 2023. </p> <p>“The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%,“ the <strong><a href="https://www.housingwire.com/tag/federal-open-market-committee/" target="_blank" rel="noreferrer noopener">Federal Open Market Committee</a></strong> (FOMC) said in a statement. “In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities.“ </p> <p>The Fed’s moves have supported average mortgage rates at the mid-7% level, and there is no sign of relief soon. But industry experts say that mortgage origination volumes are expected to increase this year even in a higher-for-longer environment. </p> <p>Michael Metz, operations manager at <strong>V.I.P. Mortgage</strong>, estimates a 10% increase in total origination volume in 2024 compared to the previous year. The market is “still short on homes“ due to inventory problems, but buyers are not “off the table,“ he said. </p> <p>“More people are willing to sell their homes and buy a new one, even though they realize they are not going to get a lower mortgage rate, just because people are not worried about the market crashing anymore,“ Metz said. </p> <p>According to Metz, the mortgage market at this point can’t count on the “economic gamers“ — the people who buy a house due to advantageous home loan conditions or home price appreciation. But there are other borrowers facing life events — people who are divorcing, moving to another city, looking for more space or forming new families. </p> <p>“Anyone doing it for economic reasons is still holding off,“ Metz said. </p> <p><strong><a href="https://www.housingwire.com/tag/loandepot/" target="_blank" rel="noreferrer noopener">loanDepot</a></strong> CEO Frank Martell recently said the <a href="https://www.housingwire.com/articles/loandepot-ceo-talks-longer-and-tougher-mortgage-cycle-nar-settlement-and-cyberattacks/" target="_blank" rel="noreferrer noopener">mortgage market cycle</a> will be “longer and tougher than anybody expected,“ and not cured by a “50-basis-point reduction“ in rates. Stan Middleman, founder of <strong><a href="https://www.housingwire.com/tag/freedom-mortgage/" target="_blank" rel="noreferrer noopener">Freedom Mortgage</a></strong>, also thinks that “<a href="https://www.housingwire.com/articles/freedom-mortgage-founder-addresses-extraordinary-credit-profiles-profitability-and-products/" target="_blank" rel="noreferrer noopener">interest rates</a> are going to be <a href="https://www.housingwire.com/articles/as-a-higher-for-longer-rate-scenario-unfolds-how-is-the-mortgage-industry-adapting/" target="_blank" rel="noreferrer noopener">higher for longer</a>.“ </p> <p>“In order to see mortgage rates drop more significantly, the Fed will need to see more evidence that inflation is slowing. An interesting question is whether that level of confidence could be achieved by the June meeting, which will benefit from two additional CPI (Consumer Price Index) readings,“ <strong>Realtor.com</strong> chief economist Danielle Hale said in a statement<strong>. </strong></p> <p>“My expectation is that it will take longer, and that sets the Fed up for a late summer or early fall adjustment, and mortgage rates could follow suit.“</p> <p>Eric Orenstein, senior director at <strong>Fitch Ratings</strong>, agrees. “Lower mortgage rates continue to feel more out of reach in this perfect storm of persistent inflation, rising Treasury yields and the Fed’s continued runoff of its MBS (mortgage-backed securities) holdings,“ he said.</p> <p>Middleman believes “this year will look a lot like last year“ and “next year is going to look a lot like this year.“ To lenders, his message is “start making money on every loan.“ </p> <p>For <strong>Princeton Mortgage</strong> CEO Rich Weidel, reaching profitability means thinking differently about operations. </p> <p>Weidel cited <strong>Mortgage Bankers Association</strong> (MBA) <a href="https://www.housingwire.com/articles/average-imb-lost-2109-per-loan-in-q4-2023/" target="_blank" rel="noreferrer noopener">data</a>, which shows that independent mortgage banks (IMBs) have collectively been losing money for seven consecutive quarters. Revenue per loan for an IMB is about $10,376, but expenses are $12,485.</p> <p>Lenders have followed the playbook of cutting costs and hiring more loan originators, a model that seems “to be broken,“ Weidel argues. “We are not making money by following conventional wisdom.“ </p> <p>Weidel performed a profit-and-loss (P&L) analysis on each of his loan officers and found that some LOs thought to be making a profit were some of the company’s most significant loss leaders. Meanwhile, other LOs he thought weren’t in the upper tier were doing much better for the company’s earnings. </p> <p>“What happens is that your more productive loan officers have a lower cost per loan but have the same rates as your less productive ones. We should be pricing these loans differently,“ he said.</p>]]></content:encoded> <wfw:commentRss>https://www.housingwire.com/articles/rates-at-7-attract-different-types-of-borrowers-forcing-lenders-to-rethink-profit-strategies/feed/</wfw:commentRss> <slash:comments>0</slash:comments> <post-id xmlns="com-wordpress:feed-additions:1">459173</post-id> </item> <item> <title>The unchanging</title> <link>https://www.housingwire.com/articles/the-unchanging/</link> <comments>https://www.housingwire.com/articles/the-unchanging/#respond</comments> <dc:creator><![CDATA[Ann Sullivan]]></dc:creator> <pubDate>Wed, 01 May 2024 20:23:07 +0000</pubDate> <category><![CDATA[Contributors]]></category> <category><![CDATA[Opinion]]></category> <guid isPermaLink="false">https://www.housingwire.com/?p=459114</guid> <description><![CDATA[One thing that consistently remains important and demands our full attention is people, and our need to add value and connect with them.]]></description> <content:encoded><![CDATA[<p>We lament over ever-changing <a href="https://www.housingwire.com/mortgage-rates/">rates</a>, changing fees and guidelines. We change companies, processors, assistance and our workspace. Every area and facet of our <a href="https://www.housingwire.com/">industry</a>, it seems, moves, and changes with the wind. It likely is part of what you like about your career. Each day has its own opportunity to be unique and come with its own interesting set of circumstances. But none of that really matters. One thing that consistently remains important and demands our full attention is people, and our need to add value and connect with them.</p> <h2 class="wp-block-heading" id="h-why-does-it-matter">Why does it matter?</h2> <p>Why does this matter to you? Why should this be something you consider as one of the most impactful ways to nurture and grow your business?</p> <p>It is the single most important thing, in my opinion, that differentiates you from your competition and keeps your customer, and your <a href="https://www.housingwire.com/real-estate/">referral partner</a> coming back to you, the caring expert, time and time again. </p> <p>Think about it like this, you visit your local coffee shop most mornings and order your standard large almond milk latte with an extra shot, no flavor, no sugar, extra hot. The same baristas are there with you day in and day out holding your hand while you start your morning, encouraging your energy with that perfect cup o’ Joe. </p> <p>You feel good about your coffee shop, you feel connected to them, they know your name, your order, that occasionally, you go off book and get a red eye, two extra shots and a cake pop if it’s “that” kind of morning. They add value to your day by allowing you to have a thing you care about and likely, let’s be honest, need, to make it through the day. This is why you go back there over and over again. It’s the human connection, the fulfilled desire to be seen, and valued. </p> <p>It’s such a simple, but relevant example of something so small we do in our daily lives where we experience these principles. When our customers allow us to be a part of one of the most intimate parts of their life, we should be memorable, we should leave that transaction with a lasting positive imprint on someone’s life. It should be unavoidable. </p> <h2 class="wp-block-heading" id="h-my-business">My business</h2> <p>I want my clients to think of me and remember me for their friends and family, for their <a href="https://www.housingwire.com/tag/refinancing/">refinances</a>, for their future purchases or even for <a href="https://www.housingwire.com/tag/closings/">post-closing</a> questions, I want to be their constant resource.</p> <p>I send them a pizza on moving day, a personalized gift post-closing, fridge magnets with their local baseball team schedule because baseball is one of the longest sports seasons, and there’s my face on their fridge for most of the year. Then there are Christmas cards and ornaments every year, emails on birthdays, and home ownership anniversaries. Imagine how you would feel if you received a thoughtful handwritten note in the mail, or a door dashed pizza on moving day. It’s easy, inexpensive things like pizza, that make you memorable. </p> <p>If you observe, or study, great companies, you will find the epicenter of their success is an intense focus on people – connecting with and bringing value to the customer. We all know, understand, and likely have an oddly loving relationship with Amazon. I know I do. </p> <h2 class="wp-block-heading" id="h-day-one">Day one</h2> <p>Amazon has a foundational philosophy they call, “Day One.” When you think about the first day of anything, you’re fired up, excited, even unreasonable in your pursuit of excellence. Jeff Bezos states, “The foundation of their success comes from – relentlessly focusing on customers, creating long term value over short term corporate profit, and making many bold bets. – this is Day One. “</p> <p>Bezos goes on to say, “We strive to deeply understand customers and work backwards from their pain points to rapidly develop innovations and create meaningful solutions in their lives. “Day One” is about being constantly curious, nimble and experimental, it means being brave enough to fail, if it means that by applying lessons learned we can better surprise and delight customers in the future….. The number one thing that has made us successful by far is obsessive compulsive focus on the customer…” </p> <p>Great companies that have dominated their space such as Amazon, understand that when you focus on the customer, understand their wants, needs and desires to be able to work backwards from their pain points, you will be able to give them unmatched value that aligns with their principles.</p> <h2 class="wp-block-heading" id="h-so-now-what"><strong>So now what?</strong> </h2> <p>I know the questions we often ask ourselves is” how?” How do I do this? How do I know I’m connecting or adding value to my customer? These are great questions, but often it’s much simpler than that. </p> <p>A man whose opinion and perspective I value deeply challenged me years ago with, what I believe to be better questions; Did I do the right thing? Did I do the best with the things that I’ve been given? If you can honestly say, ‘Yes, I did my best with the things I’ve been given, and I did the right thing,’ you will have maximized every opportunity, made genuine connections, and given true value to your customers.</p> <p><em>To contact the editor responsible for this story: <a href="mailto:zeb@hwmedia.com" target="_blank" rel="noreferrer noopener">zeb@hwmedia.com</a></em></p>]]></content:encoded> <wfw:commentRss>https://www.housingwire.com/articles/the-unchanging/feed/</wfw:commentRss> <slash:comments>0</slash:comments> <post-id xmlns="com-wordpress:feed-additions:1">459114</post-id> </item> <item> <title>Opinion: Will new changes make houses more affordable?</title> <link>https://www.housingwire.com/articles/opinion-will-bidens-plan-make-houses-more-affordable/</link> <comments>https://www.housingwire.com/articles/opinion-will-bidens-plan-make-houses-more-affordable/#respond</comments> <dc:creator><![CDATA[Eric Forney]]></dc:creator> <pubDate>Wed, 01 May 2024 20:19:33 +0000</pubDate> <category><![CDATA[Opinion]]></category> <category><![CDATA[Real Estate]]></category> <category><![CDATA[Commission Lawsuit]]></category> <category><![CDATA[Fair Housing]]></category> <guid isPermaLink="false">https://www.housingwire.com/?p=459183</guid> <description><![CDATA[What the White House ultimately wants to do promises affordability, but threatens inequality and pricing out the most vulnerable Americans.]]></description> <content:encoded><![CDATA[<p>In 1904, the first world’s fair opened in St. Louis. It was there that the world learned how to host a fair and pack on pounds. An ice cream vendor who ran out of cups while working next to a waffle stand had a stroke of genius — he married warm waffles with cold ice cream — giving rise to the ice cream cone. Here’s the twist: by turning ice cream into a walk-and-eat love affair, it paved the way for generations of weight struggles — solving one problem by creating another.</p> <p>Just as the ice cream cone made dessert mobile — at the cost of expanding waistlines — the <a href="https://www.housingwire.com/articles/kevin-sears-pulls-back-the-curtain-on-nars-commission-lawsuit-settlement/">National Association of Realtors settlement</a>, the White House’s housing plan, and what the <a href="https://www.housingwire.com/commission-lawsuits/">DOJ</a> ultimately wants to do (eliminate cooperative compensation) promises affordability, but threatens inequality and further pricing out the most vulnerable Americans while dismantling hard-won fair housing protections.</p> <p>The <a href="https://www.housingwire.com/articles/kevin-sears-pulls-back-the-curtain-on-nars-commission-lawsuit-settlement/">plan</a>, while painted as a stride towards <a href="https://www.housingwire.com/housing-market/">affordability</a>, undermines systems of equality that were decades in the making. By shifting representation costs to buyers, it prices out those already struggling — <a href="https://www.housingwire.com/articles/survey-shows-that-discrimination-in-housing-persists-zillow/">minorities</a> historically denied access, fixed-income seniors, and first-time buyers stretched for a down payment. A modern-day redlining that reverts homeownership to a <a href="https://www.redfin.com/news/luxury-housing-market-q4-2023/"><u>wealthy</u></a>-only privilege.</p> <p>President Biden’s proposal <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2024/03/20/remarks-by-president-biden-on-lowering-housing-costs-for-american-families-las-vegas-nv-march-19-2024/"><u>claims</u></a> to lower home prices, yet provides no evidence beyond wishful political proclamations. In reality, home values follow appraisal <a href="https://www.appraisalfoundation.org/imis/TAF/Standards/Appraisal_Standards/Uniform_Standards_of_Professional_Appraisal_Practice/TAF/USPAP.aspx?hkey=a6420a67-dbfa-41b3-9878-fac35923d2af"><u>standards</u></a> untethered to commission rates. And history showed that when national builder NVR dismantled buyer agent incentives, they simply raised prices and padded <a href="https://www.macrotrends.net/stocks/charts/NVR/nvr/stock-price-history"><u>profits</u></a>.</p> <p>Moreover, the White House’s touting of a $10,000 buyer savings is mathematically unfounded. Consider the typical <a href="https://www.nar.realtor/magazine/real-estate-news/first-time-home-buyers-are-vanishing-from-the-market"><u>first-time</u></a> buyer in 2023, providing a down payment of 8%. Under the Biden plan, they must reallocate nearly half their down payment funds towards representation. For this buyer to break even under the DOJ’s proposal, home prices would need to plummet nearly 40% — a catastrophic $159,000 loss for existing homeowners.</p> <p>Even granting the DOJ’s rosy 30% <a href="https://www.housingwire.com/commission-lawsuits/">commission</a> decline projection, prices must still fall almost 20%, eviscerating $63,735 from the average <a href="https://www.housingwire.com/articles/home-sellers-saw-their-profits-shrink-in-the-first-quarter-attom/">homeowner’s equity</a> just to retain today’s status quo for buyers – a classic example of solving nothing while jeopardizing the backbone of most Americans’ wealth.</p> <p>Beyond abstract economic claims, the brunt of this policy would be borne by those who’ve championed equitable homeownership for decades. The typical Realtor, a 60-year-old <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-nar-member-profile"><u>woman</u></a> in her second career, earns a modest $46,014 annually. While this proposal does little to negatively impact the highest producers – the .03% of Realtors who sell 100 homes each year — it devastates working-class females who have been instrumental in opening access to homeownership for all Americans, regardless of race, gender, or economic status.</p> <p>As a nation, we must resist policies risking such systematic injustice and reversal of equity. Housing comprises 20% of the U.S. GDP, and property rights buttress democracy itself. This treacherous path trades a functioning system for a <a href="https://www.propublica.org/article/realpage-accused-of-collusion-in-new-lawsuit"><u>technocracy</u></a> mired in predation, fraud, and barring the middle class from home ownership. We cannot naively crave the “savings” this plan purports, while choking on its damaging realities for decades to come — solving inconveniences by creating calamities.</p> <p><em>Eric Forney is SVP of Industry and Innovation at <strong>Livian</strong>. In addition to his expertise in the real estate industry, Eric hosts Livian Podcast and Disruptance Podcast, two widely acclaimed shows for real estate team owners and entrepreneurs.</em></p>]]></content:encoded> <wfw:commentRss>https://www.housingwire.com/articles/opinion-will-bidens-plan-make-houses-more-affordable/feed/</wfw:commentRss> <slash:comments>0</slash:comments> <post-id xmlns="com-wordpress:feed-additions:1">459183</post-id> </item> <item> <title>HUD and FHA announce new appraisal bias protections</title> <link>https://www.housingwire.com/articles/hud-and-fha-announce-new-appraisal-bias-protections/</link> <comments>https://www.housingwire.com/articles/hud-and-fha-announce-new-appraisal-bias-protections/#respond</comments> <dc:creator><![CDATA[Chris Clow]]></dc:creator> <pubDate>Wed, 01 May 2024 19:59:41 +0000</pubDate> <category><![CDATA[Appraisals and Valuations]]></category> <category><![CDATA[Mortgage]]></category> <category><![CDATA[Regulatory]]></category> <category><![CDATA[Appraisals]]></category> <category><![CDATA[Fannie Mae]]></category> <category><![CDATA[FHA]]></category> <category><![CDATA[FHFA]]></category> <category><![CDATA[Freddie Mac]]></category> <category><![CDATA[HUD]]></category> <guid isPermaLink="false">https://www.housingwire.com/?p=459167</guid> <description><![CDATA[FHA and HUD announced new guidance designed to combat appraisal bias by giving borrowers more options when seeking a reconsideration of value.]]></description> <content:encoded><![CDATA[<p>The <a href="https://www.housingwire.com/tag/hud/" target="_blank" rel="noreferrer noopener"><strong>U.S. Department of Housing and Urban Development</strong></a> (HUD) and the <a href="https://www.housingwire.com/tag/fha/" target="_blank" rel="noreferrer noopener"><strong>Federal Housing Administration</strong></a> (FHA) announced a new policy on Wednesday that will enable mortgage borrowers to “request a re-assessment of the appraised value of their property if they believe that the appraisal was inaccurate or biased,” according to an announcement from HUD.</p> <p>“The Reconsideration of Value (ROV) policy represents months of collaboration with the <a href="https://www.housingwire.com/tag/fhfa/" target="_blank" rel="noreferrer noopener"><strong>Federal Housing Finance Agency</strong></a> (FHFA) to develop an aligned approach for both FHA-insured mortgages and those purchased or guaranteed by <a href="https://www.housingwire.com/tag/fannie-mae/" target="_blank" rel="noreferrer noopener"><strong>Fannie Mae</strong></a> and <a href="https://www.housingwire.com/tag/freddie-mac/" target="_blank" rel="noreferrer noopener"><strong>Freddie Mac</strong></a>,” the department said.</p> <p>Applying to all FHA single-family forward and reverse mortgage programs, the new FHA <a href="https://www.hud.gov/sites/dfiles/OCHCO/documents/2024-07hsgml.pdf" target="_blank" rel="noreferrer noopener">Mortgagee Letter</a> (ML) enhances current ROV policy while adding additional clarified statements for appraisal reviews, according to FHA. These include “improvements to the process by which borrowers may request an ROV if they identify a problem with the appraisal.”</p> <p>The guidance also requires lenders to include “a borrower-initiated ROV process meeting certain minimum requirements, including delivery of disclosures to borrowers at loan application and upon delivery of the appraisal with instructions on how to request an ROV.”</p> <p>HUD acting secretary Adrianne Todman called the new guidance an important step in HUD’s <a href="https://www.housingwire.com/articles/kamala-harris-talks-proposed-avm-bias-rule-as-white-house-announces-new-appraisal-actions/" target="_blank" rel="noreferrer noopener">ongoing efforts during the Biden administration</a> to prevent biased appraisal outcomes.</p> <p>“We know that biased home appraisals not only disproportionately harm homeowners of color, but stunt economic opportunity for the communities we serve,” Todman said in a statement. “Today, we are announcing a new step in our work to root out racial and ethnic bias in home valuations, which will give borrowers greater ability to have their home valuation reconsidered.”</p> <p>HUD called the new guidance a step to fulfill the commitments of its <a href="https://www.housingwire.com/articles/white-house-marks-one-year-of-pave-appraisal-bias-action-plan/" target="_blank" rel="noreferrer noopener">Interagency Task Force on Property Appraisal and Valuation Equity</a> (PAVE), which includes representatives from 13 federal agencies.</p> <p>“Appraisal bias harms homeowners of color at every stage of homeownership, and it can lock in inappropriately lower values for entire neighborhoods,” FHA Commissioner Julia Gordon said in a statement. “Our new policies will arm homeowners, lenders and FHA with a clear process to address biased or inaccurate appraisals.”</p> <p>The <strong>National Association of Realtors</strong> (NAR) released a statement shortly after the announcement, lauding the move.</p> <p>“We applaud HUD and the GSEs for establishing this process so consumers can more readily obtain a second look at appraisals when they disagree with them,” said Bryan Greene, NAR’s vice president of policy advocacy. “It empowers consumers while affording appraisers an opportunity to make sure they got it right. NAR has long advocated for updating the ROV process, seeing it as crucial to ensuring fair housing in the appraisal process. We are encouraged by HUD and the GSEs taking this significant step to support consumers nationwide.”</p> <p>The new guidance is effective for FHA case numbers assigned on or after Sept. 2, 2024, and the policy clarifications are expected to be added to HUD’s Single Family 4000.1 Handbook at a later date.</p> <p>“FHA’s new policy requires lenders to disclose to borrowers that they may request a reconsideration of value with instructions that explain the process, including what information will be required from a borrower and the expected [ROV] processing times,” HUD explained. “These disclosures must be provided at both the time of mortgage application and at the presentation of the appraisal.”</p> <p>New requirements for lenders include that underwriters be “trained to identify and remedy appraisal deficiencies, including racial and ethnic bias;” requirements for lenders “when receiving, processing, and communicating the status of the reconsideration of value requests initiated by a borrower;” new standards for “lender quality control of appraisal reviews and reconsiderations of value;” and new standards for appraisers “to respond to requests from lenders for a [ROV] review.”</p> <p><strong><em>Editor’s note:</em></strong><em> This story has been updated with a statement from the National Association of Realtors.</em></p>]]></content:encoded> <wfw:commentRss>https://www.housingwire.com/articles/hud-and-fha-announce-new-appraisal-bias-protections/feed/</wfw:commentRss> <slash:comments>0</slash:comments> <post-id xmlns="com-wordpress:feed-additions:1">459167</post-id> </item> <item> <title>New bill seeks to expand Social Security benefits for seniors</title> <link>https://www.housingwire.com/articles/new-bill-seeks-to-expand-social-security-benefits-for-seniors/</link> <comments>https://www.housingwire.com/articles/new-bill-seeks-to-expand-social-security-benefits-for-seniors/#respond</comments> <dc:creator><![CDATA[Chris Clow]]></dc:creator> <pubDate>Wed, 01 May 2024 19:05:15 +0000</pubDate> <category><![CDATA[Regulatory]]></category> <category><![CDATA[Reverse]]></category> <category><![CDATA[Yahoo Finance]]></category> <category><![CDATA[House of Representatives]]></category> <category><![CDATA[Senate]]></category> <category><![CDATA[social security]]></category> <category><![CDATA[Social Security Administration]]></category> <guid isPermaLink="false">https://www.housingwire.com/?p=459142</guid> <description><![CDATA[The new bill would change the standard by which the Social Security Administration calculates the annual cost-of-living adjustment.]]></description> <content:encoded><![CDATA[<p>Lawmakers in the <a href="https://www.housingwire.com/tag/house-of-representatives/" target="_blank" rel="noreferrer noopener"><strong>U.S. House of Representatives</strong></a> and <a href="https://www.housingwire.com/tag/senate/" target="_blank" rel="noreferrer noopener"><strong>U.S. Senate</strong></a> are seeking to address the rising costs of living for U.S. seniors, primarily those living on fixed incomes, which would be accomplished by increasing monthly benefits and requiring the <a href="https://www.housingwire.com/tag/social-security-administration/" target="_blank" rel="noreferrer noopener"><strong>Social Security Administration</strong></a> (SSA) to use a different inflation-calculation formula.</p> <p>The bill, known as the Boosting Benefits and COLAs for Seniors Act, is being spearheaded in the Senate by Bob Casey (D-Pa.), chairman of the Special Committee on Aging, and in the House by Ruben Gallego (D-Ariz.). So far, Gallego’s House version has not picked up any co-sponsors, while the Senate version is co-sponsored by four other Democrats and one of its independent members, Sen. Bernie Sanders (Vt.).</p> <p>“For millions of older adults in Pennsylvania and across the Nation, Social Security is the promise of a safe and stable retirement,” Casey said <a href="https://www.aging.senate.gov/press-releases/casey-colleagues-introduce-bill-to-increase-social-security-benefits-help-seniors-deal-with-rising-costs" target="_blank" rel="noreferrer noopener">in a statement</a>. “As the costs of basic goods and services for seniors rise, we cannot allow that promise to be broken. The Boosting Benefits and COLAs for Seniors Act would help seniors contend with rising costs and ensure that <a href="https://www.housingwire.com/tag/social-security/" target="_blank" rel="noreferrer noopener">Social Security</a> remains a lifeline for all who need it.”</p> <p>The bill would seek to change the standard by which COLA benefits are calculated, according to the text of the bill and an <a href="https://www.aging.senate.gov/imo/media/doc/boosting_benefits_and_colas_for_seniors_act.pdf" target="_blank" rel="noreferrer noopener">accompanying fact sheet</a> circulated by the Senate’s Special Committee on Aging.</p> <p>“Each year, Social Security benefits are adjusted by the Cost-of-Living Adjustment (COLA) formula,” the fact sheet explained. “The COLA is currently based on the Consumer Price Index for Urban Wage Earners (CPI-W) from the previous year. CPI-W is reflective of the everyday spending of Americans, and includes expenses like food, consumer goods, and housing, among others.”</p> <p>Social Security benefits, however, have not kept pace with the rising cost of living for the majority of seniors who live on a fixed income, the lawmakers explained.</p> <p>“The Consumer Price Index for Americans aged 62 or older (CPI-E) is another price index that is more reflective of the actual costs incurred by older adults; for example, within CPI-E, medical expenses are weighted more heavily than they are in CPI-W,” the fact sheet stated.</p> <p>The bill seeks to direct the SSA to recalculate the cost-of-living adjustment based on CPI-E, should that standard yield higher benefits for U.S. seniors. It would also direct the <a href="https://www.housingwire.com/tag/u-s-bureau-of-labor-statistics/" target="_blank" rel="noreferrer noopener"><strong>U.S. Bureau of Labor Statistics</strong></a> to regularly calculate and publish the CPI-E on a monthly basis.</p> <p>“Rising costs mean Arizona seniors on Social Security see the real value of their benefits decrease,” Gallego said in a statement. “My new bill puts more dollars in the pockets of Social Security recipients to pay their bills, get their medications and pay for housing.”</p> <p>Gallego’s office <a href="https://rubengallego.house.gov/media-center/in-the-news/seniors-could-get-bump-in-social-security-pay-if-gallego-bill-passes" target="_blank" rel="noreferrer noopener">acknowledges the long road to passage</a> that such a bill faces in the House given the Republican majority, with <a href="https://www.usatoday.com/story/news/politics/2024/05/01/house-gop-mike-johnson-speaker-mtg-vacancy/73261761007/" target="_blank" rel="noreferrer noopener">another disruptive leadership challenge</a> to Speaker Mike Johnson’s tenure expected in the coming days.</p>]]></content:encoded> <wfw:commentRss>https://www.housingwire.com/articles/new-bill-seeks-to-expand-social-security-benefits-for-seniors/feed/</wfw:commentRss> <slash:comments>0</slash:comments> <post-id xmlns="com-wordpress:feed-additions:1">459142</post-id> </item> <item> <title>Fed holds rates steady for the sixth straight time</title> <link>https://www.housingwire.com/articles/fed-holds-rates-steady-for-the-sixth-straight-time/</link> <comments>https://www.housingwire.com/articles/fed-holds-rates-steady-for-the-sixth-straight-time/#respond</comments> <dc:creator><![CDATA[Sarah Marx]]></dc:creator> <pubDate>Wed, 01 May 2024 18:07:30 +0000</pubDate> <category><![CDATA[Regulatory]]></category> <category><![CDATA[Featured Homepage]]></category> <category><![CDATA[Federal Reserve]]></category> <category><![CDATA[Jerome Powell]]></category> <category><![CDATA[Mortgage Rates Center]]></category> <guid isPermaLink="false">https://www.housingwire.com/?p=459106</guid> <description><![CDATA[Recent economic data hasn’t given policymakers confidence that inflation will continue to decline]]></description> <content:encoded><![CDATA[<p>The <strong><a href="https://www.housingwire.com/tag/federal-reserve/" target="_blank" rel="noreferrer noopener">Federal Reserve</a></strong>’s <a href="https://www.housingwire.com/tag/federal-open-market-committee/" target="_blank" rel="noreferrer noopener">Federal Open Markets Committee</a> (FOMC) maintained its short-term policy interest rate steady at a range of 5.25% to 5.5% for a sixth consecutive meeting on Wednesday.</p> <p>“The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%,“ the FOMC said in a statement. “In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities.“</p> <p>During their last meeting in <a href="https://www.housingwire.com/articles/fed-holds-rates-steady-with-inflation-still-running-hot/" target="_blank" rel="noreferrer noopener">March</a>, policymakers indicated that they still envisioned three interest rate cuts in 2024. But with <a href="https://www.housingwire.com/articles/as-inflation-heats-up-mortgage-rates-also-rise/" target="_blank" rel="noreferrer noopener">inflation</a> remaining sticky and unemployment staying below 4%, these expectations are becoming less likely. </p> <p>Recent economic data hasn’t given the Fed confidence that inflation will continue to decline. Strong inflation data in the first quarter, coupled with a robust <a href="https://www.housingwire.com/tag/jobs-report/" target="_blank" rel="noreferrer noopener">labor market</a>, have postponed expectations for the first Fed rate cut. In April, Fed Chairman Jerome Powell, speaking at the <a href="https://www.youtube.com/watch?v=QqwuXkUUJwc" target="_blank" rel="noreferrer noopener">Washington Forum</a>, made it clear that rate cuts were not imminent due to the strength of the economy. </p> <p>The economy has maintained surprising momentum despite the current level of short-term rates. With the unemployment rate below 4%, companies are steadily adding workers and real wage growth is observable as inflation eases. Although upward movements in inflation are noteworthy, considerable progress toward the Fed’s 2% target has been made.</p> <p>“It’s unlikely that the next policy rate move will be a hike,” Powell told journalists on Wednesday during the FOMC’s press conference. “In order to hike the rates, we would need to see persuasive evidence that our policy stance is not sufficiently restrictive to bring inflation sustainably down to 2% over time. That’s not what we are seeing at the moment.”</p> <p>While Powell emphasized the unlikelihood of future rate hikes, he also remained vague about the Fed’s future interest rate trajectory.</p> <p>“We didn’t see progress in the first quarter. It appears that it will take longer for us to reach that point of confidence,” Powell said. “I don’t know how long it will take. … My personal forecast is that we will begin to see progress on inflation this year. I don’t know that it will be enough to cut rates; we will have to let the data lead us on that.”</p> <p>In a new development, the Fed announced an easing of its quantitative tightening policy. Starting in June, the rate-setting body will lower the roll-off rate of its Treasury securities from $60 billion to $25 billion per month. This means that while the Fed will not begin selling Treasurys in June, it will allow fewer of them to mature. It will not alter its roll-off rate for mortgage-backed securities (MBS), which will remain at $35 billion per month, according to Xander Snyder, senior commercial real estate economist at <strong>First American</strong>. </p> <p>“The FOMC did not change the ongoing passive roll-off of its MBS holdings but did note that any prepayments beyond the continuing $35 billion cap would be reinvested in Treasuries,” Mike Fratantoni, senior vice president and chief economist for the <strong>Mortgage Bankers Association</strong>, said in a statement. “We expect mortgage rates to drop later this year, but not as far or as fast as we previously had predicted.”</p> <p>In addition, Powell reiterated the Fed’s commitment to carrying forward the Basel III endgame regulations in a way that’s faithful to Basel and also comparable to what the jurisdictions in other nations are doing. </p> <p>Since the March FOMC meeting, <strong>Freddie Mac</strong>’s average 30-year fixed <a href="https://www.housingwire.com/tag/mortgage-rates/" target="_blank" rel="noreferrer noopener">mortgage rate</a> has increased from 6.74% to 7.17%. Before the next FOMC meeting on June 12, two additional inflation readings are expected.</p> <p>“While it’s a possibility, I don’t think that we’ll see much change in mortgage rates following this Fed meeting, because the Fed has been willing to let the data lead at this stage in the cycle,” <strong>Realtor.com</strong> chief economist Danielle Hale said in a statement. “In order to see mortgage rates drop more significantly, the Fed will need to see more evidence that inflation is slowing.” </p> <p>For homebuyers and sellers, this suggests that housing affordability will remain a top consideration, possibly driving home purchases in affordable markets, predominantly in the Midwest and South, according to Hale.</p>]]></content:encoded> <wfw:commentRss>https://www.housingwire.com/articles/fed-holds-rates-steady-for-the-sixth-straight-time/feed/</wfw:commentRss> <slash:comments>0</slash:comments> <post-id xmlns="com-wordpress:feed-additions:1">459106</post-id> </item> </channel></rss> If you would like to create a banner that links to this page (i.e. this validation result), do the following:
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